Bail out or work out? Theoretical considerations

• 成果类型: Article
• 署名作者: Haldane, AG; Irwin, G; Saporta, V
• 署名单位: Bank of England
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.0013-0133.2003.00202.x
• 发表日期: 2004
• 页码: C130-C148
• 关键词: sovereign liquidity crises

摘要

This paper assesses various crisis resolution proposals using a theoretical model of liquidity and solvency crisis. The model suggests that payments standstills and last-resort lending are an equally efficient means of dealing with liquidity crises, while coordinated lending through creditor committees is second-best. Debt write-downs are preferred to subsidised IMF financing when dealing with solvency crises, because of the negative moral hazard implications of the latter tool. Finally, the model suggests that international bankruptcy court proposals may be superior to existing contractual approaches in securing such write-downs.